HyreCar Inc. (NASDAQ: HYRE), the car sharing marketplace for ride sharing, today reported financial results and provided a corporate update for the third quarter ended September 30, 2018.
Three Months Ended September 30,
|Year-over-Year % Change|
|Revenues||$2.7 million||$0.8 million||224.3%|
|Gross Profit||$1.5 million||$0.1 million||1,144%|
|Gross Profit Margin||54.0%||14.1%||283.8%|
|Net Loss||$(1.8) million||$(1.3) million||(38.0%)|
|Earnings per Share (Fully-Diluted)||$(0.15)||$(0.28)||46.4%|
Nine Months Ended September 30,
|Year-over-Year % Change|
|Revenues||$6.7 million||$2.0 million||239.7%|
|Gross Profit||$3.0 million||$0.2 million||1,208%|
|Gross Profit Margin||44.2%||11.5%||284.3%|
|Net Loss||$(8.6) million||$(2.9) million||(198%)|
|Earnings per Share (Fully-Diluted)||$(1.15)||$(0.68)||(69.1%)|
Recent Operational Highlights:
- Grew Rental Days to 105,261 in the third quarter of 2018, a 136% increase when compared to 44,527 in the third quarter of 2017 and a sequential increase of 13% when compared to 93,208 in second quarter of 2018.
- Added 2,424 new unique drivers in the third quarter of 2018, a 93% increase when compared to 1,253 in the third quarter of 2017 and a sequential increase of 32% when compared to 1,836 in the second quarter of 2018.
- Strengthened the management team with the addition of Scott Brogi, an accomplished financial executive as Chief Financial Officer, and Henry Park, a widely respected digital marketing thought leader as Chief Operating Officer.
- Established the following strategic partnerships:
- DriveItAway, a leading car dealer focused shared mobility company, to enable owners of dealerships or fleets of vehicles to capitalize on the Mobility-as-a-Service (MaaS) market by connecting them with drivers on HyreCars car-sharing marketplace;
- National Independent Automobile Dealers Association (NIADA) via the DriveItAway Partnership, providing NIADAs 17,000 dealership members access to HyreCars car sharing platform and an opportunity to rapidly enter the MaaS market;
- PassTime, to offer advanced vehicle asset tracking and inventory management to vehicle owners on the HyreCar platform, strengthening HyreCars value proposition amongst automotive dealers;
- Shift Technology to leverage its proprietary AI-driven fraud detection solution to optimize HyreCars insurance claims processes and deliver an exceptional customer experience to all parties; TIKD, a leading liability management solutions provider to the shared mobility industry, to launch a pilot program to integrate its seamless ticket management experience into the HyreCar platform;
- Joint venture with commercial insurance industry veterans to create an insurance captive designed to offer unique products for carsharing in the ridesharing space.
I am pleased to announce record growth in the third quarter of 2018, which stemmed directly from increased platform adoption by both automotive dealerships and rideshare drivers, said Joe Furnari, Chief Executive Officer of HyreCar. As automotive dealers are faced with more change and uncertainty than at any point in their existence, the incentive to list vehicles on the HyreCar platform and participate in the exciting Mobility as a Service industry is greater than ever before. This represents a significant opportunity in our goal to gain critical mass in the marketplace.
Participation in the HyreCar platform truly presents a win-win situation for all participants, providing aspiring rideshare drivers with a reliable, low-cost source for insured vehicles, while automotive dealers gain a new pool of prospective buyers and simultaneously diversify their businesses into the Mobility as a Service industry. HyreCar currently generates more than 30,000 new driver leads per month, representing an immense growth opportunity as we continue to scale and bring institutional vehicle supply online.
We are continuing our steady pace of operational execution throughout all areas of our business. We are increasingly well known at all levels of the industry and are now universally recognized as a thought leader within the shared mobility arena. Our recent strategic partnerships, such as those with TIKD, PassTime and Shift, further bolster our value proposition to institutional vehicle supply sources “ from which we fully expect to drive strong sequential growth. In addition, our revenue and gross profit growth has positioned us well to reach our stated goal of becoming cash flow positive by the second quarter of 2019, concluded Furnari.
Third Quarter 2018 Financial Results
Total revenue in the third quarter of 2018 increased 224% to a record $2.7 million, compared to $0.8 million in the third quarter of 2017. Sequentially, this represents an increase of 18% when compared to revenue of $2.3 million in the second quarter of 2018. The revenue increases were primarily due to the growth of the Companys business, which resulted from the expansion of the sales team and increased digital marketing spend and brand awareness.
Gross profit in the third quarter of 2018 increased to $1.5 million, compared to $0.1 million in the same year-ago quarter. Gross profit margin in the third quarter of 2018 increased significantly to 54%, compared to 14% in the same year-ago quarter. Margin expansion was driven by increases in driver revenue and referral income.
Total operating expenses, consisting of research and development, sales and marketing and general and administrative expenses, were $3.2 million in the third quarter of 2018, compared to $1.4 million in the same quarter of 2017. The increase in operating expenses was primarily due to expanding selling, general and administrative expenses to support revenue growth.
Net loss in the third quarter of 2018 totaled $1.8 million, or $(0.15) per share, compared to a net loss of $1.3 million, or $(0.28) per share, in the same quarter of 2017. The increase in net loss is primarily due to expanding operating expenses to support revenue growth.
Cash at September 30, 2018 totaled $8.7 million, compared to $11.9 million at June 30, 2018.
Full Year 2018 Revenue Guidance
For the full year ending December 31, 2018, HyreCar expects revenues to range between $9.75 to $10.25 Million. The Company expects gross profit for the full year ending December 31, 2018 to range between $4.5 to $5.0 Million.
Management will host an investor conference call at 2:00 p.m. Pacific Standard Time on November 8, 2018, to discuss HyreCars third quarter 2018 financial results, provide a corporate update, and conclude with a Q&A from participants.
To participate, please use the following information:
Date: Thursday, November 8, 2018 Time: 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) U.S. Dial-in: 1-800-263-0877 International Dial-in: 1-646-828-8143 Conference ID: 8958715 Webcast: http://public.viavid.com/index.php?id=131907
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A playback of the call will be available through November 15, 2018. To listen to the replay, call 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally. Please use the replay pin number 8958715.
A webcast will also be available for 90 days on the IR section of the HyreCar website or by clicking here.
HyreCar Inc. (NASDAQ: HYRE) actively operates in 50 states plus the District of Columbia. The Companys carsharing marketplace for ridesharing was created to leverage technology and establish a presence in automotive asset sharing. Drivers and vehicle owners alike can utilize the platform to create an opportunity for themselves where one did not previously exist. By providing a safe, secure, and reliable marketplace, HyreCar helps both parties come together“ one driver, one vehicle, one road at a time. For more information, please visit www.hyrecar.com.
HyreCar prepares and publicly release quarterly unaudited financial statements prepared in accordance with GAAP.
Forward Looking Statements
Statements in this release concerning HyreCar Inc.s (HyreCar or the Company) future expectations and plans, including, without limitation, HyreCars partnerships and technology solutions, its ability to add and maintain additional car listings from car dealers and consumer demand for cars to be used for ridesharing, may constitute forward looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these forward looking statements, which include words such as could, believe, anticipate, intend, estimate, expect, may, continue, predict, potential, project or similar terms, variations of such terms or the negative of those terms. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee such outcomes. HyreCar may not realize its expectations, and its beliefs may not prove correct. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, without limitation, market conditions and the factors described in the section entitled Risk Factors in HyreCars Prospectus, dated June 26, 2018, and HyreCars other filings made with the U. S. Securities and Exchange Commission. All such statements speak only as of the date made. Consequently, forward-looking statements should be regarded solely as HyreCars current plans, estimates and beliefs. Investors should not place undue reliance on forward-looking statements. HyreCar cannot guarantee future results, events, levels of activity, performance or achievements. HyreCar does not undertake and specifically declines any obligation to update, republish, or revise any forward-looking statements to reflect new information, future events or circumstances or to reflect the occurrences of unanticipated events, except as may be required by applicable law.
September 30, 2018
December 31, 2017
|Deferred offering costs||–||135,608|
|Other current assets||139,651||118,020|
|Total current assets||8,953,338||543,725|
|Property and equipment, net||3,570||–|
|Intangible assets, net||67,689||–|
|Liabilities and Stockholders Deficit|
|Related party advances||9,629||9,629|
|Note payable, net of discount||–||46,368|
|Notes payable – related party, net of discount||–||278,607|
|Total current liabilities||1,243,109||1,881,056|
|Commitments and contingencies (Note 3)||–||–|
|Preferred stock, 15,000,000 shares authorized, par value $0.00001, 0 and 2,429,638 issued and outstanding as of September 30, 2018 and December 31, 2017, respectively||–||1,591,886|
|Common stock, 50,000,000 share authorized, par value $0.00001, 11,708,041 and 5,252,953 issued and outstanding as of September 30, 2018 and December 31, 2017, respectively||117||52|
|Additional paid-in capital||21,728,618||2,553,672|
|Subscription receivable – related party||(7,392||)||(140,087||)|
|Total stockholders deficit||7,871,488||(1,247,331||)|
|Total liabilities and stockholders deficit||$||9,114,597||$||633,725|
|STATEMENTS OF OPERATIONS|
|Three Months ended September 30, 2018||Three Months ended September 30, 2017||Nine Months ended September 30, 2018||Nine Months ended September 30, 2017|
|Cost of revenues||1,235,702||711,724||3,723,121||1,739,202|
|General and administrative||1,210,436||479,485||5,256,169||1,157,587|
|Sales and marketing||1,421,363||678,341||3,097,586||1,349,277|
|Research and development||587,966||225,743||1,110,011||422,810|
|Total operating expenses||3,219,765||1,383,569||9,463,766||2,929,674|
|Other (income) expense:|
|Other (income) expense||6,678||–||44,029||728|
|Total other (income) expense||9,939||21,251||2,083,748||176,343|
|Loss before provision for income taxes||(1,779,454||)||(1,288,259||)||(8,597,001||)||(2,880,365||)|
|Provision for income taxes||–||800||–||800|
|Weighted average shares outstanding – basic and diluted||11,708,041||4,614,356||7,496,175||4,216,986|
|Weighted average net loss per share – basic and diluted||$||(0.15||)||$||(0.28||)||$||(1.15||)||$||(0.68||)|